GSTR-4 Annual Return Guide: Due Date, Rates & Filing
If you’ve opted for the GST Composition Scheme, you know that the biggest perk is the reduced paperwork. Instead of filing every month, you only have to deal with one annual return: the GSTR-4. While you still make small quarterly payments (via CMP-08), GSTR-4 is your big year-end summary. It’s the final health check where you reconcile your sales and purchases for the entire year. For the Financial Year 2025-2026, there’s some good news: the government has permanently pushed the deadline forward to give small business owners more breathing space. Let’s look at how to get this filed without the stress.
When is the Due Date for GSTR-4?
In the early days of GST, the deadline was April 30th. However, a major update (Notification No. 12/2024) has changed this for the long term.
- The New Deadline: From FY 2024-25 onwards, the due date is June 30th of the following financial year.
- For FY 2025-26: You must file your GSTR-4 on or before June 30, 2026.
Pro Tip: Don't wait until June 29th. The GST portal often gets slow during the final days, and missing the deadline means an automatic daily fine.
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Who needs to file GSTR-4?
Not everyone in GST uses this form. It is specifically designed for:
- Small Traders and Manufacturers: Those with a turnover up to ₹1.5 Crore (₹75 Lakh for North-Eastern states).
- Service Providers: Those with a turnover up to ₹50 Lakh.
- Transitioners: If you were under the Composition Scheme for even one day during the year, you must file GSTR-4 for that period.
GST Rates for Composition Taxpayers (2025-26)
One of the best things about GSTR-4 is the low, flat tax rates. You don't have to worry about the standard 12% or 18% slabs. Instead, you pay based on your business type:
Category of Business
CGST
SGST
Total Tax Rate
Manufacturers & Traders
0.5%
0.5%
1%
Restaurants (Non-alcoholic)
2.5%
2.5%
5%
Service Providers
3.0%
3.0%
6%
How to file GSTR-4: A simple 5-Step process
Filing GSTR-4 is much simpler than regular returns because you don't need to upload every single invoice.
- Log in to the Portal: Go to [suspicious link removed] and navigate to Services > Returns > Annual Return.
- Select the Year: Choose FY 2025-26 and click on Prepare Online.
- Check Auto-populated Data: The portal will automatically pull your sales data from the CMP-08 forms you filed throughout the year.
- Enter Purchase Details: This is the part that takes time. You need to enter a summary of your purchases, especially those where you have to pay tax under Reverse Charge (RCM).
- Submit and Verify: Click Compute Liability, pay any extra tax due, and verify using your Aadhaar OTP (EVC).
Late Fees and Penalties
If you miss the June 30th deadline, the GST portal will automatically calculate a late fee when you eventually file.
- For Regular Returns: ₹50 per day (₹25 CGST + ₹25 SGST), capped at a maximum of ₹2,000.
- For NIL Returns: If you had zero business, the fee is ₹20 per day (₹10 + ₹10), capped at ₹500.
- Interest: If you owe any tax and pay it late, you’ll also be charged 18% interest per year on the unpaid amount.
Summary: GSTR-4 Cheat Sheet
Feature
Details for FY 2025-26
Frequency
Once a year
Filing Deadline
June 30, 2026
Can you claim ITC?
No. Composition dealers cannot claim credit for tax paid on purchases.
Can you collect tax?
No. You cannot charge GST to your customers.
Revision
Once filed, GSTR-4 cannot be revised. Double-check everything!
Conclusion
GSTR-4 is the final exam for small businesses under the Composition Scheme. Since you already file CMP-08 every quarter, this annual return should be a breeze if your books are in order. The key is reconciliation; ensure that the total sales you report in GSTR-4 match the sum of your four quarterly CMP-08 filings. By taking advantage of the June 30th deadline, you can ensure your business remains compliant without the monthly return headache that regular taxpayers face.